The fixed rate in an interest rate swap (IRS) expressed as a percentage rate instead of a premium or a discount to a specified reference rate. The absolute swap yield, as a result, is made up of two parts: the reference rate and the premium or discount expressed as a fixed percentage. For example, if the fixed rate of a swap is at a 4% premium or a 1% discount, and the LIBOR rate is 5%, the absolute swap yield is 9% and 4% respectively.

The absolute swap yield is also known as an absolute rate.